Been running numbers lately with our regular prepays that get discount vs those that are call ins. I have been concerned about x amount per pound I am applying or x amount per oz I am applying. I haven't figured per client what I profit. Do you guys know what each account is costing you? Do you profit 5, 10, dollars per visit after gas, product, etc.

charmill26

08-18-2012, 07:32 PM

do you know your costs per 1000 etc? If you don't know what you profit for each client or what it costs your to service them do you have an "average" client you base your costs and profit on? I'm a newb to the treatment side of the business but if you knew how many lbs and how many oz you were applying per 1000, and knew how many sq ft the property is wouldn't you know what it costs you vs how much you are charging and the profit from it?

RigglePLC

08-18-2012, 09:09 PM

Sure enough. you should know your exact cost per 1000 sqft. but some rounds are more costly than others, because you can use inexpensive fertilizer in the fall, and you must use expensive pre-emergent in spring. You should time yourself so you know your approximate cost per mile for your vehicle (including gas, oil, tires, insurance, truck payment) Plus the cost per hour of the driver of the vehicle.

And you need to know your overhead cost. Divide this by the number of applications you did last year --and you have your overhead charge per stop.

meets1

08-19-2012, 10:53 AM

Riggle - that's what i am working on now. I haven't gone up in price much the last three years and the office women are getting things printed for the 2013 tear which includes our price structure. Where are some of you guys at in this realm?
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WestGaPineStraw

08-19-2012, 06:24 PM

80% mark up after all overhead is factored in. Not here to work for free.
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